The move into Mexico is part of an overall international expansion strategy, according to Paul Marciano, co-chairman and co-CEO of Guess. Marciano points out that Guess had an apparel license in the region for more than 20 years until 2004 and sees Mexico as a market with potential that could match some of the other international markets. He cites the success the company has enjoyed in Canada, where it started a joint venture in 1994 that is now a wholly owned subsidiary of Guess and "one of our best performing regions."
Grupo Axo's co-CEO, Alberto Fasja Cohen, says that the growth strategy for Mexico over the next several years includes the opening of several freestanding stores and more than 50 "shop-in-shops" within leading department stores. During the first year of operations in Mexico, the joint venture plans plan to "position Guess as one of the top fashion brands," co-CEO Andres Gomez says.
Guess owned and operated 326 retail stores in the US and Canada as of Aug. 26. Grupo Axo owned and operated 39 retail stores and more than 300 shop-in-shops throughout Mexico as of Aug. 31.
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